diff --git a/CHANGELOG.adoc b/CHANGELOG.adoc
index 962c2da9d3..8ac464998d 100644
--- a/CHANGELOG.adoc
+++ b/CHANGELOG.adoc
@@ -17,6 +17,10 @@
 |===
 | | Description | PR
 
+| 🎁
+| Add `--env-file` option to function create/update command
+| https://github.com/knative/client/pull/1423[#1419]
+
 | ✨
 | Reuse conflict retry loop from client-go/util/retry
 | https://github.com/knative/client/pull/1441[#1441]
diff --git a/docs/cmd/kn_container_add.md b/docs/cmd/kn_container_add.md
index 63ff4180cd..808983ee0a 100644
--- a/docs/cmd/kn_container_add.md
+++ b/docs/cmd/kn_container_add.md
@@ -31,6 +31,7 @@ kn container add NAME
       --arg stringArray              Add argument to the container command. Example: --arg myArg1 --arg --myArg2 --arg myArg3=3. You can use this flag multiple times.
       --cmd stringArray              Specify command to be used as entrypoint instead of default one. Example: --cmd /app/start or --cmd sh --cmd /app/start.sh or --cmd /app/start --arg myArg to pass additional arguments.
   -e, --env stringArray              Environment variable to set. NAME=value; you may provide this flag any number of times to set multiple environment variables. To unset, specify the environment variable name followed by a "-" (e.g., NAME-).
+      --env-file string              Path to a file containing environment variables (e.g. --env-file=/home/knative/service1/env).
       --env-from stringArray         Add environment variables from a ConfigMap (prefix cm: or config-map:) or a Secret (prefix secret:). Example: --env-from cm:myconfigmap or --env-from secret:mysecret. You can use this flag multiple times. To unset a ConfigMap/Secret reference, append "-" to the name, e.g. --env-from cm:myconfigmap-.
       --env-value-from stringArray   Add environment variable from a value of key in ConfigMap (prefix cm: or config-map:) or a Secret (prefix sc: or secret:). Example: --env-value-from NAME=cm:myconfigmap:key or --env-value-from NAME=secret:mysecret:key. You can use this flag multiple times. To unset a value from a ConfigMap/Secret key reference, append "-" to the key, e.g. --env-value-from ENV-.
       --extra-containers string      Specify path to file including definition for additional containers, alternatively use '-' to read from stdin. Example: --extra-containers ./containers.yaml or --extra-containers -.
diff --git a/docs/cmd/kn_service_apply.md b/docs/cmd/kn_service_apply.md
index 92825518d1..eb80c84987 100644
--- a/docs/cmd/kn_service_apply.md
+++ b/docs/cmd/kn_service_apply.md
@@ -40,6 +40,7 @@ kn service apply s0 --filename my-svc.yml
       --concurrency-target int            Recommendation for when to scale up based on the concurrent number of incoming request. Defaults to --concurrency-limit when given.
       --concurrency-utilization int       Percentage of concurrent requests utilization before scaling up. (default 70)
   -e, --env stringArray                   Environment variable to set. NAME=value; you may provide this flag any number of times to set multiple environment variables. To unset, specify the environment variable name followed by a "-" (e.g., NAME-).
+      --env-file string                   Path to a file containing environment variables (e.g. --env-file=/home/knative/service1/env).
       --env-from stringArray              Add environment variables from a ConfigMap (prefix cm: or config-map:) or a Secret (prefix secret:). Example: --env-from cm:myconfigmap or --env-from secret:mysecret. You can use this flag multiple times. To unset a ConfigMap/Secret reference, append "-" to the name, e.g. --env-from cm:myconfigmap-.
       --env-value-from stringArray        Add environment variable from a value of key in ConfigMap (prefix cm: or config-map:) or a Secret (prefix sc: or secret:). Example: --env-value-from NAME=cm:myconfigmap:key or --env-value-from NAME=secret:mysecret:key. You can use this flag multiple times. To unset a value from a ConfigMap/Secret key reference, append "-" to the key, e.g. --env-value-from ENV-.
       --extra-containers string           Specify path to file including definition for additional containers, alternatively use '-' to read from stdin. Example: --extra-containers ./containers.yaml or --extra-containers -.
diff --git a/docs/cmd/kn_service_create.md b/docs/cmd/kn_service_create.md
index 6b7c9a00fb..1848248fe3 100644
--- a/docs/cmd/kn_service_create.md
+++ b/docs/cmd/kn_service_create.md
@@ -65,6 +65,7 @@ kn service create NAME --image IMAGE
       --concurrency-target int            Recommendation for when to scale up based on the concurrent number of incoming request. Defaults to --concurrency-limit when given.
       --concurrency-utilization int       Percentage of concurrent requests utilization before scaling up. (default 70)
   -e, --env stringArray                   Environment variable to set. NAME=value; you may provide this flag any number of times to set multiple environment variables. To unset, specify the environment variable name followed by a "-" (e.g., NAME-).
+      --env-file string                   Path to a file containing environment variables (e.g. --env-file=/home/knative/service1/env).
       --env-from stringArray              Add environment variables from a ConfigMap (prefix cm: or config-map:) or a Secret (prefix secret:). Example: --env-from cm:myconfigmap or --env-from secret:mysecret. You can use this flag multiple times. To unset a ConfigMap/Secret reference, append "-" to the name, e.g. --env-from cm:myconfigmap-.
       --env-value-from stringArray        Add environment variable from a value of key in ConfigMap (prefix cm: or config-map:) or a Secret (prefix sc: or secret:). Example: --env-value-from NAME=cm:myconfigmap:key or --env-value-from NAME=secret:mysecret:key. You can use this flag multiple times. To unset a value from a ConfigMap/Secret key reference, append "-" to the key, e.g. --env-value-from ENV-.
       --extra-containers string           Specify path to file including definition for additional containers, alternatively use '-' to read from stdin. Example: --extra-containers ./containers.yaml or --extra-containers -.
diff --git a/docs/cmd/kn_service_update.md b/docs/cmd/kn_service_update.md
index 2c92504d86..ace06bcfbd 100644
--- a/docs/cmd/kn_service_update.md
+++ b/docs/cmd/kn_service_update.md
@@ -50,6 +50,7 @@ kn service update NAME
       --concurrency-target int            Recommendation for when to scale up based on the concurrent number of incoming request. Defaults to --concurrency-limit when given.
       --concurrency-utilization int       Percentage of concurrent requests utilization before scaling up. (default 70)
   -e, --env stringArray                   Environment variable to set. NAME=value; you may provide this flag any number of times to set multiple environment variables. To unset, specify the environment variable name followed by a "-" (e.g., NAME-).
+      --env-file string                   Path to a file containing environment variables (e.g. --env-file=/home/knative/service1/env).
       --env-from stringArray              Add environment variables from a ConfigMap (prefix cm: or config-map:) or a Secret (prefix secret:). Example: --env-from cm:myconfigmap or --env-from secret:mysecret. You can use this flag multiple times. To unset a ConfigMap/Secret reference, append "-" to the name, e.g. --env-from cm:myconfigmap-.
       --env-value-from stringArray        Add environment variable from a value of key in ConfigMap (prefix cm: or config-map:) or a Secret (prefix sc: or secret:). Example: --env-value-from NAME=cm:myconfigmap:key or --env-value-from NAME=secret:mysecret:key. You can use this flag multiple times. To unset a value from a ConfigMap/Secret key reference, append "-" to the key, e.g. --env-value-from ENV-.
       --extra-containers string           Specify path to file including definition for additional containers, alternatively use '-' to read from stdin. Example: --extra-containers ./containers.yaml or --extra-containers -.
diff --git a/docs/cmd/kn_source_container_create.md b/docs/cmd/kn_source_container_create.md
index 840f30cee1..71a2054b2f 100644
--- a/docs/cmd/kn_source_container_create.md
+++ b/docs/cmd/kn_source_container_create.md
@@ -20,6 +20,7 @@ kn source container create NAME --image IMAGE --sink SINK
       --arg stringArray              Add argument to the container command. Example: --arg myArg1 --arg --myArg2 --arg myArg3=3. You can use this flag multiple times.
       --cmd stringArray              Specify command to be used as entrypoint instead of default one. Example: --cmd /app/start or --cmd sh --cmd /app/start.sh or --cmd /app/start --arg myArg to pass additional arguments.
   -e, --env stringArray              Environment variable to set. NAME=value; you may provide this flag any number of times to set multiple environment variables. To unset, specify the environment variable name followed by a "-" (e.g., NAME-).
+      --env-file string              Path to a file containing environment variables (e.g. --env-file=/home/knative/service1/env).
       --env-from stringArray         Add environment variables from a ConfigMap (prefix cm: or config-map:) or a Secret (prefix secret:). Example: --env-from cm:myconfigmap or --env-from secret:mysecret. You can use this flag multiple times. To unset a ConfigMap/Secret reference, append "-" to the name, e.g. --env-from cm:myconfigmap-.
       --env-value-from stringArray   Add environment variable from a value of key in ConfigMap (prefix cm: or config-map:) or a Secret (prefix sc: or secret:). Example: --env-value-from NAME=cm:myconfigmap:key or --env-value-from NAME=secret:mysecret:key. You can use this flag multiple times. To unset a value from a ConfigMap/Secret key reference, append "-" to the key, e.g. --env-value-from ENV-.
       --extra-containers string      Specify path to file including definition for additional containers, alternatively use '-' to read from stdin. Example: --extra-containers ./containers.yaml or --extra-containers -.
diff --git a/docs/cmd/kn_source_container_update.md b/docs/cmd/kn_source_container_update.md
index 3ad7703bbc..e86dc41458 100644
--- a/docs/cmd/kn_source_container_update.md
+++ b/docs/cmd/kn_source_container_update.md
@@ -20,6 +20,7 @@ kn source container update NAME --image IMAGE
       --arg stringArray              Add argument to the container command. Example: --arg myArg1 --arg --myArg2 --arg myArg3=3. You can use this flag multiple times.
       --cmd stringArray              Specify command to be used as entrypoint instead of default one. Example: --cmd /app/start or --cmd sh --cmd /app/start.sh or --cmd /app/start --arg myArg to pass additional arguments.
   -e, --env stringArray              Environment variable to set. NAME=value; you may provide this flag any number of times to set multiple environment variables. To unset, specify the environment variable name followed by a "-" (e.g., NAME-).
+      --env-file string              Path to a file containing environment variables (e.g. --env-file=/home/knative/service1/env).
       --env-from stringArray         Add environment variables from a ConfigMap (prefix cm: or config-map:) or a Secret (prefix secret:). Example: --env-from cm:myconfigmap or --env-from secret:mysecret. You can use this flag multiple times. To unset a ConfigMap/Secret reference, append "-" to the name, e.g. --env-from cm:myconfigmap-.
       --env-value-from stringArray   Add environment variable from a value of key in ConfigMap (prefix cm: or config-map:) or a Secret (prefix sc: or secret:). Example: --env-value-from NAME=cm:myconfigmap:key or --env-value-from NAME=secret:mysecret:key. You can use this flag multiple times. To unset a value from a ConfigMap/Secret key reference, append "-" to the key, e.g. --env-value-from ENV-.
       --extra-containers string      Specify path to file including definition for additional containers, alternatively use '-' to read from stdin. Example: --extra-containers ./containers.yaml or --extra-containers -.
diff --git a/pkg/kn/flags/podspec.go b/pkg/kn/flags/podspec.go
index 84880a2457..071ae0eab8 100644
--- a/pkg/kn/flags/podspec.go
+++ b/pkg/kn/flags/podspec.go
@@ -32,6 +32,7 @@ type PodSpecFlags struct {
 	Env          []string
 	EnvFrom      []string
 	EnvValueFrom []string
+	EnvFile      string
 	Mount        []string
 	Volume       []string
 
@@ -85,6 +86,9 @@ func (p *PodSpecFlags) AddFlags(flagset *pflag.FlagSet) []string {
 			"To unset, specify the environment variable name followed by a \"-\" (e.g., NAME-).")
 	flagNames = append(flagNames, "env")
 
+	flagset.StringVarP(&p.EnvFile, "env-file", "", "", "Path to a file containing environment variables (e.g. --env-file=/home/knative/service1/env).")
+	flagNames = append(flagNames, "env-file")
+
 	flagset.StringArrayVarP(&p.EnvValueFrom, "env-value-from", "", []string{},
 		"Add environment variable from a value of key in ConfigMap (prefix cm: or config-map:) or a Secret (prefix sc: or secret:). "+
 			"Example: --env-value-from NAME=cm:myconfigmap:key or --env-value-from NAME=secret:mysecret:key. "+
@@ -169,7 +173,7 @@ func (p *PodSpecFlags) AddFlags(flagset *pflag.FlagSet) []string {
 func (p *PodSpecFlags) ResolvePodSpec(podSpec *corev1.PodSpec, flags *pflag.FlagSet, allArgs []string) error {
 	var err error
 
-	if flags.Changed("env") || flags.Changed("env-value-from") {
+	if flags.Changed("env") || flags.Changed("env-value-from") || flags.Changed("env-file") {
 		envToUpdate, envToRemove, err := util.OrderedMapAndRemovalListFromArray(p.Env, "=")
 		if err != nil {
 			return fmt.Errorf("Invalid --env: %w", err)
@@ -180,7 +184,24 @@ func (p *PodSpecFlags) ResolvePodSpec(podSpec *corev1.PodSpec, flags *pflag.Flag
 			return fmt.Errorf("Invalid --env-value-from: %w", err)
 		}
 
-		err = UpdateEnvVars(podSpec, allArgs, envToUpdate, envToRemove, envValueFromToUpdate, envValueFromToRemove)
+		envsFileToUpdate := util.NewOrderedMap()
+		envsFileToRemove := []string{}
+		if p.EnvFile != "" {
+			envsFromFile, err := util.GetEnvsFromFile(p.EnvFile, "=")
+			if err != nil {
+				return fmt.Errorf("Invalid --env-file: %w", err)
+			}
+			envsFileToUpdate, envsFileToRemove, err = util.OrderedMapAndRemovalListFromArray(envsFromFile, "=")
+			if err != nil {
+				return fmt.Errorf("Invalid --env: %w", err)
+			}
+		}
+
+		err = UpdateEnvVars(
+			podSpec, allArgs, envToUpdate, envToRemove,
+			envValueFromToUpdate, envValueFromToRemove,
+			p.EnvFile, envsFileToUpdate, envsFileToRemove,
+		)
 		if err != nil {
 			return err
 		}
diff --git a/pkg/kn/flags/podspec_helper.go b/pkg/kn/flags/podspec_helper.go
index 6ecda65da2..c35853cd16 100644
--- a/pkg/kn/flags/podspec_helper.go
+++ b/pkg/kn/flags/podspec_helper.go
@@ -56,17 +56,22 @@ func containerOfPodSpec(spec *corev1.PodSpec) *corev1.Container {
 // UpdateEnvVars gives the configuration all the env var values listed in the given map of
 // vars.  Does not touch any environment variables not mentioned, but it can add
 // new env vars and change the values of existing ones.
-func UpdateEnvVars(spec *corev1.PodSpec,
-	allArgs []string, envToUpdate *util.OrderedMap, envToRemove []string, envValueFromToUpdate *util.OrderedMap, envValueFromToRemove []string) error {
+func UpdateEnvVars(spec *corev1.PodSpec, allArgs []string,
+	envToUpdate *util.OrderedMap, envToRemove []string,
+	envValueFromToUpdate *util.OrderedMap, envValueFromToRemove []string,
+	envFileName string, envValueFileToUpdate *util.OrderedMap, envValueFileToRemove []string,
+) error {
 	container := containerOfPodSpec(spec)
 
 	allEnvsToUpdate := util.NewOrderedMap()
 
 	envIterator := envToUpdate.Iterator()
 	envValueFromIterator := envValueFromToUpdate.Iterator()
+	envValueFileIterator := envValueFileToUpdate.Iterator()
 
 	envKey, envValue, envExists := envIterator.NextString()
 	envValueFromKey, envValueFromValue, envValueFromExists := envValueFromIterator.NextString()
+	envValueFileKey, envValueFileValue, envValueFileExists := envValueFileIterator.NextString()
 	for _, arg := range allArgs {
 		// envs are stored as NAME=value
 		if envExists && isValidEnvArg(arg, envKey, envValue) {
@@ -86,6 +91,14 @@ func UpdateEnvVars(spec *corev1.PodSpec,
 				ValueFrom: envVarSource,
 			})
 			envValueFromKey, envValueFromValue, envValueFromExists = envValueFromIterator.NextString()
+		} else if envValueFileExists && isValidEnvValueFileArg(arg, envFileName) {
+			for envValueFileExists {
+				allEnvsToUpdate.Set(envValueFileKey, corev1.EnvVar{
+					Name:  envValueFileKey,
+					Value: envValueFileValue,
+				})
+				envValueFileKey, envValueFileValue, envValueFileExists = envValueFileIterator.NextString()
+			}
 		}
 	}
 
@@ -109,6 +122,12 @@ func isValidEnvValueFromArg(arg, envValueFromKey, envValueFromValue string) bool
 	return strings.HasPrefix(arg, envValueFromKey+"="+envValueFromValue) || strings.HasPrefix(arg, "--env-value-from="+envValueFromKey+"="+envValueFromValue)
 }
 
+// isValidEnvValueFileArg checks that the input arg is a valid argument for specifying env from value,
+// ie. stored as NAME=secret:sercretName:key or NAME=config-map:cmName:key
+func isValidEnvValueFileArg(arg, envFileName string) bool {
+	return strings.HasPrefix(arg, envFileName) || strings.HasPrefix(arg, "--env-file="+envFileName)
+}
+
 // UpdateEnvFrom updates envFrom
 func UpdateEnvFrom(spec *corev1.PodSpec, toUpdate []string, toRemove []string) error {
 	container := containerOfPodSpec(spec)
diff --git a/pkg/kn/flags/podspec_helper_test.go b/pkg/kn/flags/podspec_helper_test.go
index 28fb1c078e..5fbd60f951 100644
--- a/pkg/kn/flags/podspec_helper_test.go
+++ b/pkg/kn/flags/podspec_helper_test.go
@@ -51,7 +51,7 @@ func TestUpdateEnvVarsNew(t *testing.T) {
 	envToUpdate, envToRemove, err := util.OrderedMapAndRemovalListFromArray(argsEnv, "=")
 	assert.NilError(t, err)
 	args := append([]string{"command"}, argsEnv...)
-	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, util.NewOrderedMap(), []string{})
+	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, util.NewOrderedMap(), []string{}, "", util.NewOrderedMap(), []string{})
 	assert.NilError(t, err)
 	assert.DeepEqual(t, expected, spec.Containers[0].Env)
 }
@@ -71,7 +71,7 @@ func TestUpdateEnvVarsMixedEnvOrder(t *testing.T) {
 	envToUpdate, envToRemove, err := util.OrderedMapAndRemovalListFromArray(argsEnv, "=")
 	assert.NilError(t, err)
 	args := append([]string{"command"}, argsEnv...)
-	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, util.NewOrderedMap(), []string{})
+	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, util.NewOrderedMap(), []string{}, "", util.NewOrderedMap(), []string{})
 	assert.NilError(t, err)
 	assert.DeepEqual(t, expected, spec.Containers[0].Env)
 }
@@ -121,7 +121,7 @@ func TestUpdateEnvVarsValueFromNew(t *testing.T) {
 	args := append([]string{"command"}, argsEnvValueFrom...)
 	envValueFromToUpdate, envValueFromToRemove, err := util.OrderedMapAndRemovalListFromArray(argsEnvValueFrom, "=")
 	assert.NilError(t, err)
-	err = UpdateEnvVars(spec, args, util.NewOrderedMap(), []string{}, envValueFromToUpdate, envValueFromToRemove)
+	err = UpdateEnvVars(spec, args, util.NewOrderedMap(), []string{}, envValueFromToUpdate, envValueFromToRemove, "", util.NewOrderedMap(), []string{})
 	assert.NilError(t, err)
 	assert.DeepEqual(t, expected, spec.Containers[0].Env)
 }
@@ -162,7 +162,7 @@ func TestUpdateEnvVarsAllNew(t *testing.T) {
 	assert.NilError(t, err)
 	envValueFromToUpdate, envValueFromToRemove, err := util.OrderedMapAndRemovalListFromArray(argsEnvValueFrom, "=")
 	assert.NilError(t, err)
-	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, envValueFromToUpdate, envValueFromToRemove)
+	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, envValueFromToUpdate, envValueFromToRemove, "", util.NewOrderedMap(), []string{})
 	assert.NilError(t, err)
 	assert.DeepEqual(t, expected, spec.Containers[0].Env)
 }
@@ -197,7 +197,7 @@ func TestUpdateEnvVarsValueFromValidate(t *testing.T) {
 		args := append([]string{"command"}, input...)
 		envValueFromToUpdate, envValueFromToRemove, err := util.OrderedMapAndRemovalListFromArray(input, "=")
 		assert.NilError(t, err)
-		err = UpdateEnvVars(spec, args, util.NewOrderedMap(), []string{}, envValueFromToUpdate, envValueFromToRemove)
+		err = UpdateEnvVars(spec, args, util.NewOrderedMap(), []string{}, envValueFromToUpdate, envValueFromToRemove, "", util.NewOrderedMap(), []string{})
 		fmt.Println()
 		msg := fmt.Sprintf("input \"%s\" should fail, as it is not valid entry for containers.env.valueFrom", input[0])
 		assert.ErrorContains(t, err, " ", msg)
@@ -482,7 +482,7 @@ func TestUpdateEnvVarsModify(t *testing.T) {
 	args := append([]string{"command"}, argsEnv...)
 	envToUpdate, envToRemove, err := util.OrderedMapAndRemovalListFromArray(argsEnv, "=")
 	assert.NilError(t, err)
-	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, util.NewOrderedMap(), []string{})
+	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, util.NewOrderedMap(), []string{}, "", util.NewOrderedMap(), []string{})
 	assert.NilError(t, err)
 	assert.DeepEqual(t, expected, container.Env)
 }
@@ -516,7 +516,7 @@ func TestUpdateEnvVarsValueFromModify(t *testing.T) {
 	args := append([]string{"command"}, argsEnvValueFrom...)
 	envValueFromToUpdate, envValueFromToRemove, err := util.OrderedMapAndRemovalListFromArray(argsEnvValueFrom, "=")
 	assert.NilError(t, err)
-	err = UpdateEnvVars(spec, args, util.NewOrderedMap(), []string{}, envValueFromToUpdate, envValueFromToRemove)
+	err = UpdateEnvVars(spec, args, util.NewOrderedMap(), []string{}, envValueFromToUpdate, envValueFromToRemove, "", util.NewOrderedMap(), []string{})
 	assert.NilError(t, err)
 	assert.DeepEqual(t, expected, container.Env)
 }
@@ -557,7 +557,7 @@ func TestUpdateEnvVarsAllModify(t *testing.T) {
 	assert.NilError(t, err)
 	envValueFromToUpdate, envValueFromToRemove, err := util.OrderedMapAndRemovalListFromArray(argsEnvValueFrom, "=")
 	assert.NilError(t, err)
-	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, envValueFromToUpdate, envValueFromToRemove)
+	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, envValueFromToUpdate, envValueFromToRemove, "", util.NewOrderedMap(), []string{})
 	assert.NilError(t, err)
 	assert.DeepEqual(t, expected, container.Env)
 }
@@ -572,7 +572,7 @@ func TestUpdateEnvVarsRemove(t *testing.T) {
 	args := append([]string{"command"}, remove...)
 	envToUpdate, envToRemove, err := util.OrderedMapAndRemovalListFromArray(remove, "=")
 	assert.NilError(t, err)
-	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, util.NewOrderedMap(), []string{})
+	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, util.NewOrderedMap(), []string{}, "", util.NewOrderedMap(), []string{})
 	assert.NilError(t, err)
 
 	expected := []corev1.EnvVar{
@@ -606,7 +606,7 @@ func TestUpdateEnvVarsValueFromRemove(t *testing.T) {
 	args := append([]string{"command"}, remove...)
 	envValueFromToUpdate, envValueFromToRemove, err := util.OrderedMapAndRemovalListFromArray(remove, "=")
 	assert.NilError(t, err)
-	err = UpdateEnvVars(spec, args, util.NewOrderedMap(), []string{}, envValueFromToUpdate, envValueFromToRemove)
+	err = UpdateEnvVars(spec, args, util.NewOrderedMap(), []string{}, envValueFromToUpdate, envValueFromToRemove, "", util.NewOrderedMap(), []string{})
 	assert.NilError(t, err)
 
 	expected := []corev1.EnvVar{
@@ -659,7 +659,7 @@ func TestUpdateEnvVarsAllRemove(t *testing.T) {
 	assert.NilError(t, err)
 	envValueFromToUpdate, envValueFromToRemove, err := util.OrderedMapAndRemovalListFromArray(argsEnvValueFrom, "=")
 	assert.NilError(t, err)
-	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, envValueFromToUpdate, envValueFromToRemove)
+	err = UpdateEnvVars(spec, args, envToUpdate, envToRemove, envValueFromToUpdate, envValueFromToRemove, "", util.NewOrderedMap(), []string{})
 	assert.NilError(t, err)
 
 	expected := []corev1.EnvVar{
diff --git a/pkg/kn/flags/podspec_test.go b/pkg/kn/flags/podspec_test.go
index c0ab6fc8a3..69f09ff112 100644
--- a/pkg/kn/flags/podspec_test.go
+++ b/pkg/kn/flags/podspec_test.go
@@ -28,6 +28,7 @@ import (
 	"github.com/spf13/cobra"
 	"gotest.tools/v3/assert"
 	corev1 "k8s.io/api/core/v1"
+	v1 "k8s.io/api/core/v1"
 	"knative.dev/client/pkg/util"
 	"knative.dev/pkg/ptr"
 )
@@ -285,3 +286,45 @@ func TestPodSpecResolveReturnError(t *testing.T) {
 	out := outBuf.String()
 	assert.Assert(t, util.ContainsAll(out, "Invalid", "mount"))
 }
+
+func TestPodSpecResolveWithEnvFile(t *testing.T) {
+	file, err := ioutil.TempFile("", "envfile.env")
+	assert.NilError(t, err)
+	file.WriteString("svcOwner=James\nsvcAuthor=James")
+	defer os.Remove(file.Name())
+
+	inputArgs := []string{"--image", "repo/user/imageID:tag", "--env", "svcOwner=David",
+		"--env-file", file.Name(), "--port", "8080", "--cmd", "/app/start", "--arg", "myArg1"}
+	expectedPodSpec := corev1.PodSpec{
+		Containers: []corev1.Container{
+			{
+				Image:   "repo/user/imageID:tag",
+				Command: []string{"/app/start"},
+				Args:    []string{"myArg1"},
+				Ports: []corev1.ContainerPort{
+					{
+						ContainerPort: 8080,
+					},
+				},
+				Env: []corev1.EnvVar{{Name: "svcOwner", Value: "James"}, {Name: "svcAuthor", Value: "James"}},
+				Resources: v1.ResourceRequirements{
+					Limits:   v1.ResourceList{},
+					Requests: v1.ResourceList{},
+				},
+			},
+		},
+	}
+	flags := &PodSpecFlags{}
+	testCmd := &cobra.Command{
+		Use: "test",
+		Run: func(cmd *cobra.Command, args []string) {
+			podSpec := &corev1.PodSpec{Containers: []corev1.Container{{}}}
+			err := flags.ResolvePodSpec(podSpec, cmd.Flags(), inputArgs)
+			assert.NilError(t, err, "PodSpec cannot be resolved.")
+			assert.DeepEqual(t, expectedPodSpec, *podSpec)
+		},
+	}
+	testCmd.SetArgs(inputArgs)
+	flags.AddFlags(testCmd.Flags())
+	testCmd.Execute()
+}
diff --git a/pkg/util/parsing_helper.go b/pkg/util/parsing_helper.go
index e35a7f3665..c10bdbd256 100644
--- a/pkg/util/parsing_helper.go
+++ b/pkg/util/parsing_helper.go
@@ -15,7 +15,9 @@
 package util
 
 import (
+	"bufio"
 	"fmt"
+	"os"
 	"strings"
 
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
@@ -23,6 +25,25 @@ import (
 	"knative.dev/pkg/tracker"
 )
 
+// GetEnvsFromFile transform a path to a file containing environment variable into a list of key-value pair.
+// If there is an issue reading the file or parsing the content in the file an error value will be returned.
+func GetEnvsFromFile(filepath string, delimiter string) ([]string, error) {
+	envs := []string{}
+	file, err := os.Open(filepath)
+	if err != nil {
+		return envs, err
+	}
+	scanner := bufio.NewScanner(file)
+	for scanner.Scan() {
+		line := scanner.Text()
+		if len(line) == 0 {
+			continue
+		}
+		envs = append(envs, scanner.Text())
+	}
+	return envs, nil
+}
+
 // OrderedMapAndRemovalListFromArray creates a list of key-value pair using MapFromArrayAllowingSingles, and a list of removal entries
 func OrderedMapAndRemovalListFromArray(arr []string, delimiter string) (*OrderedMap, []string, error) {
 	orderedMap := NewOrderedMap()
diff --git a/pkg/util/parsing_helper_test.go b/pkg/util/parsing_helper_test.go
index 35889b3ee9..9a85c13672 100644
--- a/pkg/util/parsing_helper_test.go
+++ b/pkg/util/parsing_helper_test.go
@@ -16,6 +16,8 @@ package util
 
 import (
 	"fmt"
+	"io/ioutil"
+	"os"
 	"testing"
 
 	"gotest.tools/v3/assert"
@@ -186,3 +188,25 @@ func testToTrackerReference(t *testing.T, input, namespace string, expected *tra
 func funcRef(ref func(t *testing.T, err error)) *func(*testing.T, error) {
 	return &ref
 }
+
+func TestGetEnvsFromFile(t *testing.T) {
+	file, err := ioutil.TempFile("", "test-1")
+	assert.NilError(t, err)
+	file.WriteString(`
+name=service-1
+
+target=hello-world
+
+`)
+	defer os.Remove(file.Name())
+
+	envs, err := GetEnvsFromFile(file.Name(), "=")
+	assert.NilError(t, err)
+	assert.DeepEqual(t, envs, []string{"name=service-1", "target=hello-world"})
+}
+
+func TestGetEnvsFromFileErrorNotFound(t *testing.T) {
+	envs, err := GetEnvsFromFile("/tmp/somerandom/path/bla/bla", "=")
+	assert.ErrorContains(t, err, "no such file or directory")
+	assert.DeepEqual(t, envs, []string{})
+}